Let's play a game.We will be dividing $10.Our game will have two steps.

• First, we will determine how much of the $10 we will keep, and how much of it we will offer to you.
• In the second step, you get to decide whether to accept or reject our offer.
• If you accept the offer, then we will pay you the amount that we offered you, and we will keep the rest.
• If you reject the offer, then both of us will receive $0 (read: we both end up with none of it).

So here is our offer.We will keep $9.90.And we will offer you 10 cents.Do you accept the 10 cents or do you reject our offer?Please explain your decision.Now suppose that you find yourself bargaining over a contract.Please also explain why knowing about this game may influence your bargaining strategy. NOTE: we are playing with hypothetical moneyno funds will be exchanged.